After weeks of pulling out money, there's been a big drop off in the amount of money investors are yanking out of the bond market. ICI chief economist Brian Reid joins MoneyBeat. Photo: Getty Images.

This transcript has been automatically generated and may not be 100% accurate.

... ay ay mm mm ... on the ten point two was up about on fifty earlier ... stock market rallying everyone's talking about the stock market your stock market money coming into it since the Great safe haven where you want to be ... named the analysts often gone on for a few weeks ... in the bond market with money coming out ... of the drop off in them money investors are yanking out of the bond market ... that has slowed Li Li is the big bond selloff that the stock market ... to wait for a long long time is that he errors in nineteen ... ICI chief economist Brian Reid is here ... on Tuesday at my money beats went on whether to ... even think is is a huge outflow from bond funds total money coming out of office ... and all you hear the hot stock boy just licking their chops are a beacon ... of money to come to us that ... what's really going on right well we saw about half that go into money market funds nosebleeds coming on the site into cash waiting to see what really happens Penney shake out in the bond market ... on and so you know in in terms of ... inflows into stock funds ... on domestic equity funds still a modest all flows in and we're still seeing some of this the tendency to go in to international funds those investing abroad ... aam patterns we've been seen for about two or three years now actually ... so really hasn't been accused rotation ... of money from bonds into stocks now you know and I'll lot of people been anticipating that dry think one of the things that we've been ... talking about that ... is that we have a really is the significant demographic of force that's going to DCT baby boomers and as they prepare for retirement are normally going to ... allocate ... some portion of portfolio into fixed income securities ... I think that's going to be up causes many need much state you're going for you know we've seen sixty seventy billion dollars since the end of May come out of bond funds ... it's about two percent of the assets of the three point five trillion debt was invested the end of May ... aam and and you know we will continue see some old closest normal we saw this in the early nineties in the Fed began to signal it was an enemy as ... easy anymore early two thousand ... will see some money coming out ... but I think what's different this time ... off from those two events is that this aging baby boomer population wants some exposure ... and that was given exposure to you know income producing assets and that's the bond market and upon to give the yields are rising rates are going up ... and doesn't that serve create its own attractive asset ... with low by a ten year one point six and what's interesting life in your home point six ... the mall a better two point six that's that's right in you begin to see that it would as we see many cycles before that initial set of on some individuals taking some money off the table not one to get hit with that Capital awesome I'm kind of waiting how we for interest rates to rise ... we may see money move into short-term bond funds convince him when they got me out of dummy funds ... I'm kind of field ... anticipating this for some time ... and then because of that income ... these returns he slowly well even with these losses begin to turn positive again over the course the next year to pay a ton of course but long-term rates to the ... so in the Stock Market VC lot of ... buybacks or a high-level alot insider buying ... is a somewhat economy coming its own little insular thing ... I think it's still integrate with the rest of the economy in aam I think what's going on is that we often ... do want to certainly floor was with prices in the euro ... ten fifteen years ago people were concerned about the speed of one generation ... as they begin to move into bonds and whether or not this was going to cause bought a stock prices to fall ... on Hwy or arming back then is that the fundamentals were still drives prices it's just that in and it's really not so much flows ... I think you know the stock market itself is being on the score for buybacks alike are being driven by decision by corporations how to manage their income answer where to invest it ... on and I think that these clothes that were seen here ... aam are not certain a significant factor in the concert determine prices for bonds or stocks on primary hijacking cars that come in today I think